There is ongoing skepticism about the return of a bull run in the cryptocurrency market. However, the updated monthly charts for the US dollar via the Gold (XAU) and Dollar Currency Index (DXY) indicate that something extraordinary is developing. At Kriptokoin.com, we shine a light on why Bitcoin is ready to shine. We’re also looking at the long-term chart of Gold and Bitcoin and the Dollar Index’s decline against BTC/USD.
Gold and cryptocurrency Bitcoin chart
The 1-month XAU/BTC chart showing Bitcoin’s Gold price reveals an interesting development. The June candlestick goes beyond the Bollinger Band baseline, which represents the 20-period simple moving average. Typically, when XAU/BTC closes below the key, it tends to reach the lower Bollinger Band. If this pattern continues, it marks a new all-time low on the chart. Accordingly, Bitcoin will hit a new all-time high priced in ounces of Gold.
Dollar currency index (DXY) and BTC/USD
Examining the BTC/USD versus DXY chart offers another perspective on the cryptocurrency market in relation to major macro assets. Similar to the gold chart, the price exceeds the Bollinger Band baseline (called “mid-BB”). However, there is something different from XAU/BTC. Accordingly, the DXY/BTCUSD chart hints that the baseline has become a resistance level. It also points to several months of consolidation below the foundation.
Historically, this often leads to a downward push towards the lower Bollinger Band. Accordingly, it results in all-time lows for the ratio. DXY represents the strength of the US dollar. Thus, such a scenario potentially marks all-time highs for the standard cryptocurrency BTC/USD chart.
While the doubts linger
Doubts continue in the market. The long-term Gold-Bitcoin chart and the downtrend of DXY against BTCUSD provide interesting information. The cryptocurrency Bitcoin’s potential to shine is evident as these charts show the probability of hitting all-time highs for BTC priced at the rate of Gold and standard BTCUSD. As the cryptocurrency market continues to evolve, these indicators highlight the exciting prospects ahead for Bitcoin.
On the other hand, the recent increase in the crypto money market brings optimism. If the optimism continues, it will be possible to exceed important thresholds in prices. Of course, let’s say that these increases occur right in the middle of regulatory pressures. Despite everything, the increases also shed light on the future of the market.
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